His comments come amid concern that hotels and pubs with rooms could be excluded from forthcoming support.
RedCat is the UK’s fourth largest pubs with rooms operator, with close to 1,500 letting rooms across more than 40 sites.
Its estate includes the Coaching Inn Group, which runs premium pubs with rooms in market towns and rural locations, typically generating around 60% of sales from food and drink.
Reports in recent days indicate the Government is preparing to review planned business rates increases following widespread outcry from hospitality after the measures were outlined in the November Budget.
However, operators across accommodation, café and restaurant segments fear any changes may focus solely on wet led pubs.
Lewis said the sector required both long term reform and immediate action to prevent severe contraction.
‘Out of date system’
“There are two things that the broad hospitality industry including businesses like ours urgently require of the government,” he said. “The first is to make good on the current government’s manifesto commitment to fundamentally reform what is an out of date rates system that unfairly taxes hospitality businesses.
“In the absence of meaningful reform in the here and now, the second thing the sector needs is immediate action to avert the latest proposed increases, which for many businesses are astonishing and nonsensical. Without this, the government risks overseeing a significant contraction of the sector, and stifling jobs, investment and growth.”
He added that ministers must consider rates alongside other rising costs from recent Budgets, including increases to national insurance contributions and the national living wage, which have had knock on effects across pay scales.
Sector wide support
Lewis said support must be genuinely sector wide.
“While pubs are a crucial part of hospitality and the fabric of our communities, and should receive help, it is critical that any intervention is delivered to the wider sector and includes accommodation businesses like pubs with rooms and hotels,” he said. “These sites serve local communities with a place to meet and to socialise, and are an essential part of people’s lives.
“It is important that we continue to make them viable and not burden them with ongoing and ever ballooning tax and operational increases, so they are profitable and can ensure investment continues to keep these businesses well cared for and viable for years to come.”
